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Subject:  Re: is the masrket overpriced Date:  5/14/2013  8:48 PM
Author:  OrmontUS Number:  17129 of 23009

We have been trained to associate high interest rates with a positive return (despite the fact that they frequently have been lower than the rate of inflation). In today's near zero interest rate environment, the emotional pain caused by demonstrably paltry interest rates (though possibly no more negative than they have effectively been in the past) is forcing us to invest in equities (as the "only game left in town").

Equities are risky only in as far as people stop buying them (with the premise that the reason equities rise is because they are being bought more than sold).

So the question right now is not whether they are over valued (I personally believe that there are few bargains around right now and growth is not stellar), but rather what factors are pushing people into them. A few of these:

1) Nowhere else to make a buck
2) Dr